The Indonesian government will open a new office in Singapore to attract even more investment from its neighbour and top source of foreign investment, a senior official said.

Singapore accounted for US$9.19 billion (S$12.5 billion) or 34.4 per cent of all foreign investment in Indonesia last year, said Dr Purbaya Yudhi Sadewa in Jakarta on Monday (Feb 18).

The task force’s main objectives, among others, is to streamline regulations and improve Indonesia’s economic competitiveness. It is chaired by the Coordinating Minister for the Economy and comprises officials from ministries, agencies and the central bank.

The new representative office in Singapore, said Dr Purbaya, will be tasked with approaching potential investors who had expressed interest in Indonesia last year but had failed to follow through.

According to data from the Investment Coordinating Board (BKPM), a total of 721.2 trillion rupiah (S$69.4 billion) was invested in Indonesia last year, up 4.1 per cent from 2017.

But while foreign investment contributed 392.7 trillion rupiah or more than half that total, it was down by 8.8 per cent compared to 2017.

The duties of such an office would overlap with the BKPM office and the Indonesian Investment Promotion Centre (IIPC) in Singapore. The IIPC has representative offices in Singapore, Sydney, Taipei, Tokyo, Seoul, Abu Dhabi, London, and New York.